The Reserve Bank of India (RBI) Governor Shaktikanta Das said on Sunday that Real Time Gross Settlement (RTGS) facility in the country will become operational from 12.30 am on Monday (December 14). This move by the central bank comes within a year of operationalising the national electronics funds transfer (NEFT) on a 24×7 basis.
“RTGS facility becomes operational 24X7 from 12.30 am tomorrow. Congratulations to the teams from RBI, Indian Financial Technology and Allied Services (IFTAS) and the service partners who made this possible,” Mr Das tweeted.
The RTGS system is meant for high-value transactions, on a real-time basis. The minimum amount that can be remitted through RTGS is Rs 2 lakh and there is no maximum limit. The beneficiary bank receives instructions to transfer the funds immediately after the transaction is carried out, and the transfer is instantaneous. On the other hand, NEFT handles fund transfers up to Rs 2 lakh and such transactions are usually executed in a couple of hours.
RTGS, which is meant for high-value instant fund transfers, is currently available on all working days of the week except the second and fourth Saturdays, between 7.00 am to 6.00 pm.
The Reserve Bank of India had announced on Wednesday, December 9, that the Real Time Gross Settlement System will be operational 24×7 throughout the year starting from December 14, 2020.
“India will become one of the few countries in the world to operate its RTGS system round the clock throughout the year,” Shaktikanta Das had then said.
“The RTGS system will soon be made available 24×7 in the next few days… with this enablement, it is proposed to reduce settlement and default risk in the system by facilitating settlement of AePS, IMPS, NETC, NFS, RuPay, UPI transactions on all days of the week, instead of five days earlier.” RBI Governor Shaktikanta Das said. This will make the payment ecosystem more efficient, Mr Das had added.
According to RBI, the RTGS presently handles 6.35 lakh transactions on a daily basis.